The Hightower Report

Can Ron Rein in the Fed?

The teabag-infused Republican takeover of the U.S. House has produced one big change that is already distressing GOP leaders, dismaying the tea party's corporate funders and discombobulating the elite bankers at the Federal Reserve. The change is this: Ron Paul.

This 75-year-old ultralibertarian from Texas has been in Congress for decades, building a consistent record of contrarian views and votes, some of which are quite progressive. He's been a vigorous opponent of U.S. military adventurism around the globe, for example. This has infuriated many in his own party, who have long dismissed him as an extremist nut.

But now, Paul has gone from being an irritating pest to holding real power. He's the new chairman of the subcommittee that oversees the Fed, America's central bank. He views this secretive, autocratic financial agency as a tool of the Wall Street giants, and he's even written a book called End the Fed. Even before taking over the committee, Paul has caused apoplexy among Fed officials and big bankers by saying that he'll push for a full, annual audit of the agency's financial dealings with the global elites.

How extremist, huh? Here's an outfit that furtively funnels trillions of dollars to private profiteers around the world, yet its transactions are not audited or open to public scrutiny. It's the system that's kooky, not Paul, and he's about to shine a bright light into the dark temple of the Fed, exposing an institutional collusion with Wall Street that enriches the few at the expense of the common good.

An unleashed Ron Paul not only scares the bejesus out of the bankers but also spooks the GOP political establishment, which is thoroughly marinated in Wall Street money. What fun! To keep up with the twists and turns, and to help Paul stand firm, go to www.ronpaul.org.

Wall Street Casino Grand Reopening

Last year, Democrats claimed that the new financial reform law they passed had finally shut down the Wall Street casinos – those flimflam houses of high finance that wrecked our economy in 2007. But the new Republican majority in the House say they intend to undo the reforms this year. Why? Because, sob the GOP leaders, the law passed by those Democratic meanies was too harsh on the millionaires who run Wall Street, so they plan to loosen the restraints on them.

But wait, what's that sound? Why it's the clickety-click-click of Wall Street's roulette wheel, still spinning round and round. Despite the Democrats' reform and even before the Republicans' rush to give aid and comfort to the poor bankers, the games never really stopped.

Check out Pimco, for example, a huge Wall Street player that has been trying to lure hotshot investors into a new gambling scheme. It promises to buy bad mortgages from troubled banks and – hocus-pocus – turn them into a profitable windfall for Pimco and the elite gamblers who are putting up at least half-a-million bucks each.

The fund, with the peppy name of "Bravo," looks like the same kind of razzle-dazzle that wrecked us three years ago. But not to worry, for Pimco has enlisted an all-star lineup of officials from the old Bush regime to endorse the hustle, apparently thinking they give it some respectability.

There's Josh Bolten, for example, a former Goldman Sachs honcho who was George W.'s chief of staff. While in the White House, he helped loosen Wall Street regulations to allow banks to become casinos. After they imploded, he dutifully helped orchestrate a taxpayer bailout for them.

Now Bolten is onboard with Pimco to keep the roulette wheel spinning – and no doubt he'll get behind the GOP's effort to reopen the whole Wall Street casino, not to mention the next bailout they'll want.